Wednesday, March 21, 2012

Aqumin Volatility Newsletter 03/21/2012 $DOLE

Gone Bananas

As most market participants know the SPX has crept back up to 1400, mostly on the back of AAPL and the reawakening of the Financials. The NASDAQ is above 3000 which for me is a trip back to my youth in the late 90’s. This time though the valuations are a bit saner. While the new Tech Boom is getting headlines, let’s look at some names slipping under the radar.

Using the Realized Volatility Landscape in AlphaVision™ for Bloomberg below, you can see lots of “pop” in many of the sectors. This is just 1 week total return on the upside. Most sectors of the market are pretty lively with some upside action with dark green stocks showing 10 Day Realized Volatility 15 points above the 30 Day Trailing Volatility. If the name is Dark Green and flat it just means the name made a big round trip (up and down and near unchanged) and is hanging out. But there was some action at some point during the week.

3-21-2012 9-56-24 AM

As you can see from above DOLE had some swirling action then cooled a bit. Normally if I get a pull back like that I add the name to the list for a buy write candidate. Money that piles in tends to do it again. Also note how flat the Consumer Non-Cyclicals are right now after a good start to the year. With the super low realized volatilities in the group they have become unsexy as money looks for more risk. Keep an eye on them since the hotter money is not there, yet.


To read more from Andrew Giovinazzi Click Here

No comments:

Post a Comment